Cabinet approves ‘Pradhan Mantri JI-VAN yojana’ for financial support to Integrated Bioethanol Projects

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi approved the ‘Pradhan Mantri Jaiv Indhan- Vatavaran Anukool fasal awashesh Nivaran (JI-VAN) Yojana’ for providing financial support to the Integrated Bioethanol Projects.

The scheme aims to incentivise 2G Ethanol sector and support the industry by creating a suitable ecosystem for setting up commercial projects and increasing Research & Development in this area.

The Pradhan Mantri JI-VAN Yojana will be supported with the total financial outlay of Rs 1969.50 crore for the period 2018-19 to 2023-24.

Phases under JI-VAN Yojana

Under the JI-VAN Yojana, 12 Commercial Scale and 10 Demonstration Scale Second Generation (2G) ethanol projects will be provided with a Viability Gap Funding (VGF) support in two phases. These two phases are:

a) Phase-I (2018-19 to 2022-23): 6 Commercial projects and 5 demonstration projects will be supported.

b) Phase-II (2020-21 to 2023-24): Remaining 6 commercial projects and 5 demonstration projects will be supported.

Benefits

• Meeting the vision of Government in reducing import dependence by way of substituting fossil fuels with Biofuels

• Achieving the greenhouse gas emissions reduction targets through progressive substitution of fossil fuels

• Addressing environment concerns caused due to burning of biomass or crop residues.

• Improving the health of citizens

• Improving farmers’ income by providing them remunerative income for their otherwise waste agriculture residues

• Creating rural & urban employment opportunities in 2G Ethanol projects and Biomass supply chain.

• Contributing to Swacch Bharat Mission by supporting the aggregation of non­food biofuel feedstocks

• Indigenisation of Second Generation Biomass to Ethanol technologies.

Highlights of the Pradhan Mantri JI-VAN Yojana

• The Centre for High Technology (CHT), a technical body under the aegis of the Union Ministry of Petroleum and Natural Gas, will be the implementation Agency for the scheme.

• The Project developers, interested in availing benefits of the scheme, need to submit their proposal for review by Scientific Advisory Committee (SAC) of the Ministry.

• The Projects recommended by SAC shall be approved by Steering Committee of the Ministry under the chairmanship of Secretary of Ministry of Petroleum.

• The ethanol produced by the beneficiaries of the scheme will be mandatorily supplied to Oil Marketing Companies (OMCs) to further enhance the blending percentage under Ethanol Blending Programme (EBP).